Partly Cloudy

Partly Cloudy

max temp: 19°C

min temp: 16°C

ESTD 1874 Search

Economy: Recovery now reaching the financial services sector, says CBI/PwC study

06:00 20 January 2014

Matthew Fell, the CBI

Matthew Fell, the CBI's director for competitive markets.

Archant

The UK’s economic recovery is beginning to feed through to the financial services sector, according to a new report.

shares

The latest CBI/PwC Financial Services Survey covering the three months to December shows optimism in the sector rising at its fastest rate since the study began in 1989, with profitability increasing for the fifth consecutive quarter.

Business volumes growth was strong across all customer categories, with the exception of financial institutions where they were flat. There was a notable pick-up in business with industrial and commercial companies.

Business volumes and profitability are also both expected to increase again next quarter.

The survey also shows that employment grew at its fastest pace since 2007 and expected employment growth for the first quarter of 2014 is also the strongest since the survey began.

Based on the latest CBI/PwC survey figures and their historical relationship with the Office for National Statistics’ workforce jobs data, the CBI estimates that financial services jobs increased by 10,000 during the fourth quarter of 2013 and it expects a further rise of 15,000 in the first quarter of 2014.

That would take employment in the sector to 1.16million, still 52,000 lower than the final quarter of 2008 when the financial crisis hit.

Matthew Fell, the CBI’s director for competitive markets, said: “As the recovery takes root in the wider economy, it is beginning to feed through to financial services firms. Things are starting to look more ‘normal’ after five years of volatility.

“All the key indicators − optimism, business volumes and profitability − are up. But it’s particularly encouraging to see longer term confidence indicators like marketing spend, employment and investment spend also rising strongly,” he added.

Kevin Burrowes, PwC’s UK financial services leader, added: “Banking sentiment continues to improve strongly, mirroring the UK economic rebound. We hope that as trust is earned and rebuilt over time, banks will increasingly be recognised positively for their role in society and their contribution to the UK economy.

“The sector is enjoying growing revenues and volumes of business. Profitability is increasing too. The sector’s confidence is illustrated by its rising headcount, a striking reversal from one year ago, and fewer respondents are concerned about demand than at any point since the financial crisis.”

shares

1 comment

  • Is this why the Interest Rate is being artificially low ?, and the banks interest rates are also extremely low ?

    Report this comment

    freedomf

    Monday, January 20, 2014

The Lord Lieutenant of Suffolk, Clare, Countess of Euston, presents the Queen's Award for Enterprise to Seafast.

Specialist logistics company Seafast was yesterday presented with the Queen’s Award for Enterprise.

Ipswich Station hanging baskets Shows (L-R) Jackie Rathbone, Abellio Area Ticket Office Manager; Kris Collins, Thompson & Morgan Comms Officer;  Ric Staines ActivGardens Lead Horticulturist and Trainer,

Stunning floral displays are welcoming passengers at Ipswich, Stowmarket and Diss rail stations this summer thanks to a partnership between local charity ActivLives and train operator Abellio Greater Anglia, with help from Ipswich’s own horticultural company Thompson & Morgan.

Carolyn Fairbairn, who is to become director general of the CBI.

A former member of the Number 10 Policy Unit is to become director general of the CBI.

Spending on drinking and eating out remained robut during May, according to the latest Greene King Leisure Spend Tracker report.

Most Britons are planning to holiday in the UK rather than overseas as they continue to monitor their spending carefully, according to a new survey.

Bury St Edmunds coffee company Frank and Earnest is among more than 100 start-up firms to have received support under Menta's Enterprise Engagement Programme.

Bury St Edmunds-based enterprise agency Menta has completed a project to support start-ups during their first year in business.

Lieutenant Aaron Lewis from Rochford, who was killed in Afghanistan in 2008 and in whose memory the Aaron Lewis Foundation has been established to support llocal and military charities through sporting and social endeavours.

The regional arm of David Wilson Homes has raised £17,000 at a golf day, held at Stoke by Nayland, for a charity set up in memory of a soldier.

The Vivo 80 model for which Sudbury-based Specflue won an award at the Home and Hearth Exhibition Awards.

Sudbury-based chimney and flue supplier Specflue has received an award for excellence in the design, innovation and quality of its products.

Shoppers in Bury St Edmunds

More and more people are visiting Bury St Edmunds, a new survey has revealed, placing the town above others of a similar size.

New Anglia LEP chairman Mark Pendlington.

A taskforce is to be established to support businesses and employees in Suffolk and Norfolk who are being affected by the downturn in the oil and gas sector.

Tesco is holding its annual general meeting today.

Tesco today reported “another step in the right direction” despite UK like-for-like sales falling by 1.3% in the first quarter of its new financial year.

Most read

Most commented

Topic pages